Customer Growth and Market Position - The active customer base increased by 10.7% to 4.19 million in 2024, with a three-year compound annual growth rate (CAGR) of 9.2% from 2022 to 2024[11]. - The number of service visits reached 8.05 million in 2024, achieving a three-year CAGR of 7.5%, highlighting robust growth in after-sales services despite flat new car sales[11]. - In key cities like Chengdu, Dalian, Nanjing, and Shenzhen, the active customer count grew by 10.2% to 950,000, translating into significant operational growth[11]. - The company holds a leading position with approximately 14.1% of luxury car brand users in these 32 cities, which account for 62.7% of the national luxury car user base[10]. - The company aims to enhance its brand positioning by deepening its market presence in the 32 strategic cities, which are crucial for high-end market integration[10]. After-Sales and Service Revenue - The after-sales service revenue reached RMB 22 billion in 2024, marking a year-on-year growth of 9.6% and a three-year compound growth rate of 10.8%[16]. - The average number of service visits for core after-sales services increased to 8.05 million, reflecting a 7.8% year-on-year growth[17]. - The daily maintenance service visits in these four cities increased by 6.7%, warranty service visits grew by 16.1%, and accident repair visits rose by 18.1%[11]. - The renewal policy and used car retail volumes in these cities also saw year-on-year increases of 21.1% and 17.6%, respectively[11]. Financial Performance - The company's revenue for the year ended December 31, 2024, was RMB 168,124.2 million, a decrease of RMB 11,165.9 million or 6.2% compared to the previous year[43]. - New car sales revenue was RMB 125,325.6 million, down RMB 14,889.3 million or 10.6% year-on-year, primarily due to a decline in new car sales volume and average selling prices[46]. - The gross profit for the year was RMB 10,671.9 million, a decrease of RMB 3,092.4 million or 22.5% compared to the previous year[46]. - The company reported a net profit of RMB 3,070.9 million for the year, down from RMB 4,990.9 million in the previous year[41]. - The proportion of revenue from new car sales decreased to 74.5% in 2024 from 78.2% in 2023, while used car sales increased to 9.2% from 7.8%[44]. Inventory and Capital Management - Inventory increased from RMB 16,366.1 million as of December 31, 2023, to RMB 18,476.9 million as of December 31, 2024, primarily due to a slight increase in new car turnover days[64]. - Average inventory turnover days increased from 31.2 days in 2023 to 35.1 days in 2024, indicating adjustments to inventory levels based on market changes[65]. - Total capital expenditure for the year was RMB 1,356.7 million, slightly down from RMB 1,426.5 million in the previous year[63]. Employee and Workforce Management - The total number of employees decreased from 31,180 as of December 31, 2023, to 26,357 as of December 31, 2024[68]. - The employee turnover rate for the year was 27.63%, with a total of 10,065 employees leaving, an increase of 118 from the previous year[108]. - Female employees account for 35.70% of the total workforce, with 17.28% in management roles and 31.25% in senior management positions as of December 31, 2024[105]. - The company provided training to 94.66% of male employees and 97.24% of female employees, with an average training duration of 27 hours for males and 29 hours for females[114]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to enhancing ESG governance and has established an ESG committee to oversee its development strategies and activities[78]. - The company aims to improve employee working conditions and conduct regular satisfaction surveys[87]. - The group emphasizes employee health and safety, adhering to relevant laws and regulations, with zero work-related fatalities and zero days lost due to work injuries in 2024[117]. - The group has established a standardized waste management system, focusing on recycling and proper disposal of hazardous waste[128]. - The group has developed a "climate change policy" to mitigate operational impacts and integrate climate change into its risk management system[132]. Corporate Governance - The board consists of a balanced mix of executive and non-executive directors, ensuring strong independence for effective decision-making[161]. - The company has established an independent board evaluation mechanism to enhance efficiency and identify areas for improvement[165]. - The board has set a measurable target to appoint at least one female director by December 31, 2024, and has already appointed two female directors as of March 27, 2024[177]. - The company has adopted a disclosure policy for inside information and established a shareholder communication policy to fulfill corporate governance responsibilities[190]. - The audit committee held a total of 2 meetings during the year ended December 31, 2024, to review interim and annual financial performance and reports[172].

Summary of the Earnings Call Company Overview - The call discusses the performance of Zhongsheng Group, a company focused on becoming a trusted automotive service brand in China, amidst a challenging market environment in 2024 [1][2]. Key Points Strategic Transformation - Zhongsheng Group is in the second year of its strategic transformation, aiming to establish itself as a leading automotive service brand [2]. - The company achieved new car sales of 485,000 units in 2024, maintaining a consistent sales volume over the past few years [2]. - The market share in luxury brands reached 14.1% in key cities, which includes both traditional luxury brands and new entrants [2]. Customer Engagement and Growth - The company has 3.5 million subscription customers, contributing to a nearly 40% increase in used car sales and over 8 million service visits [3]. - The local market density and customer engagement are emphasized as critical factors for success in the automotive service sector [3][4]. Market Trends - The automotive industry is shifting from a new car market to a focus on existing vehicle services, with 19 million luxury vehicles in 32 key cities [4][5]. - Consumer expectations for automotive services are rising, with repeat purchase rates increasing from 35% in 2016 to 74% in 2024 [6]. Operational Strategy - The company is shifting its operational focus from vehicle-centric to customer-centric approaches, utilizing digital tools to enhance service delivery [7][8]. - The strategy includes a focus on local market concentration and density to improve service opportunities and pricing power [11][12]. Financial Performance - The after-sales service segment has shown a consistent average growth rate of 15.4% over the past three years, contributing significantly to overall profitability [17]. - The company reported a total profit of 1.3 billion RMB from used car sales, despite a decrease in per-unit profit due to market fluctuations [21][22]. Debt and Liquidity Management - The company has seen a slight increase in total debt due to financing activities, but maintains a healthy debt structure with 72.7% of debt linked to daily operations and inventory [23][24]. - Cash reserves reached a historical high of 23 billion RMB, indicating strong liquidity [26]. Future Outlook - The management remains optimistic about the luxury car market's stability and the potential for profitability in new car sales, despite current competitive pressures [29][30]. - The company is exploring partnerships in the new energy vehicle sector, including collaborations with brands like AITO and Audi [35][39]. Additional Insights - The management acknowledges the challenges posed by intense competition among manufacturers and dealers, which has led to price instability [30][31]. - The focus on customer service and local market optimization is seen as a pathway to enhance profitability and market share in the long term [34][41]. Conclusion - Zhongsheng Group is navigating a complex automotive landscape with a clear focus on strategic transformation, customer engagement, and operational efficiency, positioning itself for future growth despite market challenges [1][2][3].

Zhongsheng Group Holdings Limited 中升集團控股有限公司 （於開曼群島註冊成立的有限公司） 李國強 張志誠 唐憲峰 于寧 周新 非執行董事 （股份代號：881） 董事名單及彼等角色及職能 中升集團控股有限公司董事會（「董事會」）成員如下。 執行董事 黃毅 錢少華 李顏偉 鄭寶川 – 1 – 陳豪賢 孫燕軍 獨立非執行董事 應偉 附註： C： 相關董事委員會主席 M： 相關董事委員會成員 香港，二零二五年四月八日 – 2 – 董事會已成立六個委員會。下表提供各董事會成員所屬委員會的成員資料。 董事╱ 董事會委員會 審核委員會 薪酬委員會 提名委員會 合規委員會 風險委員會 環境、社會及 管治委員會 黃毅 MMM 李國強 M M 張志誠 C M 唐憲峰 C C 于寧 周新 陳豪賢 孫燕軍 應偉 C 錢少華 MCM 李顏偉 鄭寶川 MM C ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 中升集團控股有限公司（「本公司」，連同其附屬公司統稱為「本集團」）董事會（「董事 會」）宣佈，沈進軍先生（「沈先生」）因其打算投入更多時間履行其他事務已辭任本公 司獨立非執行董事、本公司審核委員會及薪酬委員會成員以及提名委員會主席，自 二零二五年四月八日起生效。 沈先生已確認，彼與董事會並無任何分歧，亦無任何有關彼辭任之事宜須敦請本公 司股東垂注。 董事會謹此對沈先生在任期間對本公司作出的寶貴貢獻深表謝意。 Zhongsheng Group Holdings Limited 中升集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：881） 獨立非執行董事變更 及 董事會委員會組成之變動 董事會宣佈：(i)沈進軍先生已辭任本公司獨立非執行董事、本公司審核委員會及 薪酬委員會成員以及提名委員會主席；及(ii)鄭寶川女士已獲委任為本公司獨立 非執行董事、本公司審核委員會及薪酬委員會成員以及提名委員 ...

EF001 發行人所發行上市權證/可轉換債券的相關信息 發行人所發行上市權證/可轉換債券 不適用 其他信息 其他信息 不適用 發行人董事 於本公告日期，本公司執行董事為黃毅先生、李國強先生、張志誠先生、唐憲峰先生、于寧女士及周新女士；本公司非執行董事為 陳豪賢先生及孫燕軍先生；以及本公司獨立非執行董事為沈進軍先生、應偉先生、錢少華先生及李顏偉先生。 第 2 頁 共 2 頁 v 1.1.1 EF001 免責聲明 | 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因 | | | --- | --- | | 公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 | | | 股票發行人現金股息公告 | | | 發行人名稱 | 中升集團控股有限公司 | | 股份代號 | 00881 | | 多櫃檯股份代號及貨幣 | 不適用 | | 相關股份代號及名稱 | 不適用 | | 公告標題 截至二零二四年十二月三十一日止年度之末期股息 | | | 公告日期 | 2025年3月28日 | | 公告狀態 | 新公告 | | 股息信息 ...

Financial Performance - For the fiscal year ending December 31, 2024, the total revenue decreased by 6.2% to RMB 168,124.2 million compared to RMB 179,290.1 million in 2023[2]. - The overall net profit for the year was RMB 3,070.9 million, a decline of 38.5% from RMB 4,990.9 million in 2023[3]. - Gross profit for the year was RMB 10,671.9 million, a decline of RMB 3,092.4 million or 22.5% compared to the previous year[27]. - The operating profit was RMB 5,674.5 million, a decrease of RMB 2,665.2 million or 32.0% compared to the previous year[34]. - The company recorded a net profit of RMB 3,070.9 million for the year, a decrease of RMB 1,920.0 million or 38.5% compared to the previous year[23]. - Basic earnings per share for the year was RMB 1.35, down from RMB 2.09 in 2023, reflecting a decline of 35.4%[67]. - The total tax expense for 2024 was RMB 1.03 billion, down from RMB 1.84 billion in 2023, indicating a reduction of about 44%[91]. Sales and Market Performance - New car sales volume fell by 3.2% to 485,307 units, while luxury brand sales decreased by 3.7% to 293,370 units[3]. - The number of used car sales surged by 37.9% to 226,231 units, indicating a strong performance in the used car market[3]. - New car sales revenue was RMB 125,325.6 million, down RMB 14,889.3 million or 10.6%, primarily due to a decline in new car sales volume and average selling prices[24]. - Used car sales revenue increased to RMB 15,417.3 million, up RMB 1,432.5 million or 10.2%, driven by higher sales volume despite a decrease in average selling prices[24]. - The sales volume of new cars priced above RMB 400,000 decreased by nearly 300,000 units to 1 million units, accounting for 4.5% of total sales[19]. - The retail sales of automobiles in 2024 showed a slight increase of approximately 1.0%, indicating downward pressure on car prices[19]. Customer Engagement and Services - Active customer count increased by 10.7% to 4.19 million, with a three-year compound annual growth rate (CAGR) of 9.2% from 2022 to 2024[6]. - In key strategic cities, the active customer base grew by 10.2%, with significant increases in service visits: maintenance up 6.7%, warranty services up 16.1%, and accident repairs up 18.1%[7]. - The company processed 8.05 million core after-sales service entries, marking a 7.8% increase from the previous year, with a three-year CAGR of 7.5%[12]. - The company provided nearly 8 million car wash services in 2024, enhancing customer engagement and service value[13]. Strategic Initiatives and Future Outlook - The company emphasizes a strategic transformation to become a well-known quality automotive service provider in China, focusing on customer-centric services[4]. - The company is strategically positioned to capitalize on the growing demand for high-quality automotive services in the post-market sector[22]. - Forward-looking statements regarding business outlook and financial performance are based on existing data and assumptions, subject to risks and uncertainties[116]. Dividends and Shareholder Information - The company plans to distribute a final dividend of HKD 0.678 per share, pending shareholder approval at the annual general meeting[3]. - The proposed final dividend for 2024 is HKD 0.678 per share, equivalent to approximately RMB 0.634, compared to HKD 0.797 in 2023[102]. - The total proposed final dividend for 2024 amounts to HKD 1,604 million, approximately RMB 1,500 million[112]. Operational Efficiency and Cost Management - Selling and distribution expenses were RMB 7,552.6 million, a decrease of RMB 184.3 million or 2.4% compared to the previous year[31]. - Administrative expenses were RMB 2,229.2 million, down RMB 189.4 million or 7.8% year-over-year due to cost control measures[32]. - The company has no significant acquisitions or future investment plans as of December 31, 2024[60][61]. Inventory and Capital Management - Inventory increased from RMB 16,366.1 million to RMB 18,476.9 million due to a slight increase in new car turnover days[56]. - Average inventory turnover days increased from 31.2 days in 2023 to 35.1 days in 2024, indicating adjustments to inventory levels[57]. - Total capital expenditure for the year ending December 31, 2024, is RMB 1,356.7 million, a decrease from RMB 1,426.5 million in the previous year[55]. Debt and Financing - The company issued zero-coupon convertible bonds with a principal amount of HKD 4,560 million, maturing in 2025, with a conversion price adjusted to HKD 43.88 per share effective from July 4, 2024[49]. - The company issued a total of $450 million 3.00% bonds due in 2026, with a purchase offer made at $966 per $1,000 principal[51]. - The bank loans and other borrowings as of December 31, 2024, amounted to RMB 32,039.2 million, an increase from RMB 28,372.8 million the previous year[46]. Employee and Governance - The number of employees decreased from 31,180 in 2023 to 26,357 in 2024, a reduction of about 15.5%[109]. - The company expressed gratitude to employees and stakeholders for their unwavering support and dedication[115]. - The company has adopted corporate governance codes and has complied with them throughout the reporting period[104].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Zhongsheng Group Holdings Limited 中升集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：881） 董事會會議召開日期 中升集團控股有限公司（「本公司」）董事會（「董事會」）茲通告謹定於二零二五年三月 二十八日（星期五）舉行董事會會議，以考慮及通過（包括其他事項），本公司及其附 屬公司截至二零二四年十二月三十一日止的全年業績及建議派發末期股息（如有）。 承董事會命 中升集團控股有限公司 主席 黃毅 香港，二零二五年三月十八日 於本公告日期，本公司執行董事為黃毅先生、李國強先生、張志誠先生、唐憲峰先 生、于寧女士及周新女士；本公司非執行董事為陳豪賢先生及孫燕軍先生；以及本 公司獨立非執行董事為沈進軍先生、應偉先生、錢少華先生及李顏偉先生。 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Zhongsheng Group Holdings Limited 中升集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：881） 自願公告 擬就拓展經銷網絡與一汽奧迪銷售有限責任公司建立戰略合作夥伴關係 本公告乃由中升集團控股有限公司（「本公司」，連同其附屬公司統稱為「本集團」）之 董事會（「董事會」）自願刊發，以向其股東及潛在投資者提供有關本集團最新業務發 展的更新資料。 擬與一汽奧迪建立戰略合作夥伴關係 根據諒解備忘錄，本集團與一汽奧迪擬於二零二五年內新建10家以上經銷網點，以 强化一汽奧迪在中國的經銷網絡。本集團與一汽奧迪亦將於新能源發展、新業務場 景落地等領域緊密合作，旨在為彼等客戶提供更優質、更多樣的體驗。 – 1 – 一般事項 諒解備忘錄僅為本公司與一汽奧迪間訂立的諒解備忘錄。諒解備忘錄項下擬進行的 交易的實施須待最終訂立最終協議後，方可作實，且未必會如本公告所述落實或甚 至 ...

Investment Rating - The report assigns a "Buy" rating for Zhongsheng Holdings (00881.HK) for the first time [4]. Core Views - Zhongsheng Holdings is a leading automotive dealer in China, focusing on luxury and mid-to-high-end brands, with a strategic shift towards new energy vehicles (NEVs) [4][22]. - The company is expected to see revenue growth from 2024 to 2026, with projected revenues of 1794.76 billion, 1841.02 billion, and 1807.36 billion CNY respectively, and net profits of 25.45 billion, 31.64 billion, and 49.40 billion CNY [4]. - The current price-to-earnings (P/E) ratios for 2024, 2025, and 2026 are 11.0, 8.9, and 5.7 respectively, indicating attractive valuation compared to peers [4]. Summary by Sections Company Overview - Zhongsheng Holdings ranks first in the 2024 list of China's top automotive dealers, with a focus on luxury brands such as Mercedes-Benz and Lexus [4][22]. - The company operates 419 4S dealerships across 32 major cities in China, providing comprehensive automotive services [23]. Financial Performance - In the first half of 2024, Zhongsheng achieved a revenue of 824.21 billion CNY, with a year-on-year growth of 0.6%. However, new car sales revenue decreased by 5.8% due to price competition [31]. - The net profit for the same period was 15.8 billion CNY, reflecting a significant decline of 47.5% year-on-year, primarily due to reduced gross margins from new car sales [33]. Business Segments - New car sales faced challenges, with a gross margin of -3.3% in the first half of 2024, marking the first loss in this segment [5][37]. - The after-sales and used car segments showed resilience, with after-sales revenue growing by 9.3% and used car revenue increasing by 61.6% year-on-year [31][37]. Market Position and Strategy - Zhongsheng is transitioning towards new energy vehicle sales, having partnered with Seres to enhance its offerings in this growing market [4][22]. - The company aims to improve operational efficiency through centralized management, which has already led to significant growth in after-sales and used car businesses [6][31].

Investment Rating - The report assigns a "Buy" rating for Zhongsheng Holdings (00881.HK) [4] Core Views - Zhongsheng Holdings is a leading automotive dealer in China, focusing on luxury and mid-to-high-end brands, with a strategic shift towards new energy vehicles [4][22] - The company is expected to see revenue growth from 2024 to 2026, with projected revenues of 1794.76 billion, 1841.02 billion, and 1807.36 billion CNY respectively, and net profits of 25.45 billion, 31.64 billion, and 49.40 billion CNY [4] - The current price-to-earnings (P/E) ratio is projected to be 11.0, 8.9, and 5.7 for the years 2024, 2025, and 2026, indicating a low valuation compared to peers [4] Summary by Sections Company Overview - Zhongsheng Holdings ranks first in the 2024 list of China's top automotive dealers, with a focus on brands like Mercedes-Benz and Lexus [4][22] - The company operates 419 4S outlets across 32 major cities, providing comprehensive automotive services [23] Financial Performance - In the first half of 2024, the company reported revenues of 824.21 billion CNY, with a year-on-year growth of 0.6% [31] - New car sales revenue was 608.12 billion CNY, down 5.8% year-on-year, primarily due to price competition [31] - The net profit for the first half of 2024 was 15.8 billion CNY, a decline of 47.5% compared to the previous year [33] Business Segments - The new car segment faced challenges with a gross margin of -3.3% in the first half of 2024, marking the first loss in this area [5][37] - The after-sales and used car segments showed resilience, with after-sales revenue growing by 9.3% and used car revenue increasing by 61.6% year-on-year [31][37] Market Position and Strategy - The company is transitioning towards new energy vehicle sales, having partnered with Seres to enhance its offerings [4][22] - Zhongsheng's centralized operations have improved efficiency, particularly in after-sales and used car businesses [6][31] Valuation Metrics - The projected P/E ratios for 2024, 2025, and 2026 are 11.0, 8.9, and 5.7 respectively, indicating a favorable valuation compared to industry averages [4][7]